I went to a movie with a friend today. We saw Killers of the Flower Moon, a Martin Scorsese film with a three and a half hour runtime. Yet, for some reason, the pacing of the film itself which was methodical and even, masked the impression of the length. It wasn't filled with action, nor was it grand, yet for some reason it was compelling. While the movie is based on a book, the story itself is true. I am still processing my thoughts on it as a movie, but what it did highlight was just how greedy and calculating humanity is.
Greed and calculation.
My friend is going through some life changes and as a result, is reevaluating conditions and opportunities. With the end of their marriage being highly disruptive to finances, they are looking for ways to improve their outlook, which is actually a good thing. If we did this more often, we'd likely not end up in such bad shape overall, or make less bad decisions.
A bad decision they made was to trade in a very nice and comfortable sedan, and buy a luxury SUV partially financed. While at the time it wasn't an issue, now moving into single income life with additional financial burden, they'd like to get rid of the car payment.
Cars are such a terrible purchase.
They are always a cost. But, depending on the car, those costs can be significantly different. Maintenance and service costs, part costs, insurances and yearly taxes - they all add up. For what?
I like cars, yet I am not in the financial situation that I would consider buying what I like. There is a bottom limit on what I will drive based on needs and weather conditions here, and I will make decisions on maintenance expectations - but it doesn't really matter what I drive, as long as it does the job. Sometimes I wonder for those who have spent a lot on cars in the past, if they have run into some tight spots, do they wish they could go back and make a trade for a lesser model? And I wonder, did cars that they have owned really bring them some kind of return on the expense that made it worth it?
I don't see it.
For the most part, most of the cars are the same, with minor variations that ew might desire in a moment, but soon forget once we have. This might change if we go right up to the top-end of the ranges, where millions are being spent on unique and very limited run cars - but then, if buying from that end, does the money matter at all? For the most part, the "prestige" of cars is a scam to extract more value from people who could probably better spend the money to make real improvement in their lives.
For example, my friend was saying that they spend about 400€ a month on car payments directly, without factoring in all the other costs. Had they kept their previous (near new) car, they would have this amount in their pocket. They could have been putting 200€ into their house loan to increase their capital reduction by 20% a month. And, they could have been investing 2500 a year into stocks, crypto, or some other generative investment. On one side, reducing debt, the other increasing wealth. At the point where the house is paid off, the wealth would be substantial.
Was the experience of the car worth it?
But, we make bad financial decisions, especially when we are "comfortable" enough to spend larger amounts. However, larger amounts is a relative term. For some, it is a luxury SUV, for others is it is the value of a handbag, for another still, it is a meal at a restaurant. Yet, all these amounts add up to take away opportunity from something else, building wealth.
Money isn't everything, but a great deal of the money we have is spent on what doesn't improve our lives. It isn't just the bills we face, and the poor quality food we consume, but so much of the consumer products and services are a hinderance to wellbeing, not a facilitator. Even the people caught in the narrative of "buying experience" don't seem to recognize, that most of what they are buying is an event, not a life. The experiences are short-lived, while the majority of our lives are lived in some kind of suffering. Buying a better experience should really be one that improves us daily, not one that satiates us long enough to survive our normal lives.
Greed and calculation.
We are all greedy. We all greedily want our wants met. However, to be able to meet any of them, we first have to build our resources, to have the ability to buy what we want, whether it be in money, time, skill, or love. If we do not invest into building our resources, we have nothing to give to meet our needs.
My friend is going through the calculations now, evaluating what they have, what they need and what they want, and working out where they can best spend the resources to satisfy their requirements. It is an opportunity to evaluate life, and recalibrate for what is important for an improved experience in this life.
What doesn't kill you, makes you stronger.
Friedrich Nietzsche
What doesn't improve us, is a waste.
Me.
Taraz
[ Gen1: Hive ]
